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Google OpEx for 2022 was ~$180B [1]. IIUC, salaries are ~$20B - total R&D spending is ~$31B [2]. However, at least some software developer expenses are counted

• jmoak3 4y ago
  To return to Q2 2021's Profit-Per-Employee they wouldn't need to cut OpEx by 20%, just increase profit by 20%. >it appears cutting OpEx by 20% would be hard to achieve by cutting headcount. Cutting OpEx by 20% isn't what I suggested the problem is. If it were, that would increase Profit-Per-Employee way past Sundar's goal: If they cut an OpEx of 180b (let's say 45b per quarter) by 20%, their profit would grow by much more than 20%. 0.2 * 45 = 9b while profit was 20b for Q2 2021 and 2022. Saving that 9b would increase profit by 45%. EDIT: Oh, unless you're suggesting Sundar is saying he wants to cut OpEx by 20% in article, in which case I agree with your assessment. However I didn't suggest Google should try to fire 20% of people, that would probably make things much worse. When Sundar says 20% more efficient, I'm interpreting that he wants that Profit-Per-Employee ratio to go back to where it was Q2 2021.
  • gowld 4y ago
    > Profit-Per-Employee Employees are only one kind of expense. Why does Profit-Per-Employee matter?